The Cabinet of Barking and Dagenham Council met on Tuesday 19 December 2023 to discuss the council's financial position and future budget strategy. Key decisions included noting the projected revenue overspend for the current financial year and approving the strategy for the upcoming financial years, which includes proposed council tax increases. The Cabinet also noted urgent action taken regarding a potential care home acquisition.

Revenue Budget Monitoring 2023/24 (Period 7)

The council's revenue budget monitoring report for the 2023/24 financial year, as of 31 October 2023, indicated a projected net overspend of £11.605 million for the General Fund. This represented an improvement of £1.047 million compared to the previous period. However, the Housing Revenue Account (HRA) maintained a projected overspend of £7.08 million. Councillor Dominic Twomey, Leader of the Council, highlighted that continuing demand pressures, particularly in social care, were significant factors. He stressed the importance of ongoing efforts to reduce spending to mitigate the impact on the council's reserves and its ability to set a balanced budget for 2024/25. The report also detailed key organisational risks and assumptions underpinning the financial forecast.

A virement of £10,733,468 was approved from the Enforcement Service budget to the Public Realm budget to reflect the transfer of the Parking service. Additionally, £3.684 million was re-appropriated to the Budget Support Reserve from other non-ringfenced reserves.

Budget Strategy 2024/25 to 2026/27

Councillor Twomey presented the updated Medium Term Financial Strategy (MTFS) and Budget Strategy for 2024/25 and beyond. He described the upcoming financial year as potentially more challenging than the current one, citing the government's failure to implement Fair Funding reforms and the underfunding of social care services, necessitating the maximum 2% social care precept on council tax bills.

The projected budget gap for 2024/25 was £23.335 million, even after accounting for £10.618 million in proposed savings. The net savings, after growth, amounted to £8.327 million. The report outlined proposed savings and growth figures by directorate, with a total of £10.618 million in savings identified. The Cabinet agreed to consult residents and taxpayers on a proposed 2.99% General Council Tax increase and a 2% Adult Social Care Precept.

The report also noted that from 2024/25, the council's policy to support alignment with the London Living Wage in its contracts would be reviewed on a contract-by-contract basis. Authority was delegated to the Strategic Director, Resources, to agree any additional savings proposals for 2024/25 for public consultation. Cabinet members expressed criticism of the government's austerity measures and its handling of the consequences of the Covid-19 pandemic, which had increased demand for social care and other services.

Urgent Action - Potential Acquisition of the former Chaseview Care Home

The Cabinet noted the urgent action taken by the Chief Executive on 30 November 2023 to submit a bid for the former Chaseview Care Home. The report detailed the site's potential uses and the urgent timeline for its disposal. The Cabinet agreed to the submission of a bid by Be First on behalf of the council and delegated authority for submitting a best and final offer, subject to further modelling and refinement. However, the Cabinet was also informed that higher bids from established care home providers had been received by the owners, HC One, and these were currently being considered.

The Cabinet resolved to note the action taken by the Chief Executive and the subsequent information regarding higher bids received for the former Chaseview Care Home.